California State Teachers Retirement System Has $500.45 Million Holdings in Caterpillar Inc. $CAT

California State Teachers Retirement System decreased its stake in Caterpillar Inc. (NYSE:CAT) by 2.7% during the 1st quarter, Holdings Channel.com reports. The institutional investor owned 706,389 shares of the industrial products company’s stock after selling 19,669 shares during the period. Caterpillar accounts for approximately 0.5% of California State Teachers Retirement System’s holdings, making the stock its 27th largest position. California State Teachers Retirement System’s holdings in Caterpillar were worth $500,448,000 as of its most recent SEC filing.

Other large investors have also recently bought and sold shares of the company. Lam Group Inc. bought a new position in shares of Caterpillar during the first quarter valued at $26,000. Torren Management LLC bought a new stake in shares of Caterpillar in the 4th quarter worth about $27,000. Frazier Financial Advisors LLC increased its position in shares of Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 33 shares in the last quarter. Cedar Mountain Advisors LLC increased its position in shares of Caterpillar by 82.1% during the 1st quarter. Cedar Mountain Advisors LLC now owns 51 shares of the industrial products company’s stock worth $36,000 after purchasing an additional 23 shares in the last quarter. Finally, Cornerstone Financial Management LLC bought a new position in Caterpillar during the 4th quarter valued at about $32,000. 70.98% of the stock is currently owned by institutional investors.

Caterpillar Price Performance

Shares of CAT stock opened at $841.67 on Wednesday. Caterpillar Inc. has a 52-week low of $405.46 and a 52-week high of $1,073.46. The stock has a market cap of $387.66 billion, a PE ratio of 41.89, a PEG ratio of 1.71 and a beta of 1.57. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. The firm’s 50 day moving average price is $928.73 and its two-hundred day moving average price is $808.93.

Caterpillar (NYSE:CAT) last issued its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, beating the consensus estimate of $4.65 by $0.89. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The company had revenue of $17.41 billion during the quarter, compared to analysts’ expectations of $16.53 billion. During the same quarter in the previous year, the company posted $4.25 EPS. The business’s revenue for the quarter was up 22.2% compared to the same quarter last year. As a group, analysts forecast that Caterpillar Inc. will post 24.87 EPS for the current year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be given a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Monday, July 20th. This is an increase from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s dividend payout ratio is presently 32.45%.

Insider Activity at Caterpillar

In related news, insider Jason Kaiser sold 5,642 shares of Caterpillar stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $883.03, for a total transaction of $4,982,055.26. Following the transaction, the insider owned 9,594 shares of the company’s stock, valued at $8,471,789.82. This trade represents a 37.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Denise C. Johnson sold 12,605 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the transaction, the insider owned 49,825 shares of the company’s stock, valued at approximately $45,236,615.75. This represents a 20.19% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 95,773 shares of company stock worth $87,642,635. 0.33% of the stock is owned by company insiders.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Earnings expectations are supportive. Zacks upgraded Caterpillar to Rank #2 (Buy), citing improving earnings prospects. The company is also viewed as having two factors that could support a quarterly earnings beat ahead of next week’s report. Caterpillar Earnings Expected to Grow
• Positive Sentiment: Strong recent fundamentals provide a cushion. Caterpillar’s latest reported quarter exceeded consensus estimates, with revenue rising 22.2% year over year and earnings per share reaching $5.54 versus the expected $4.65. Investors may be looking for this momentum to continue in the upcoming release.
• Neutral Sentiment: Investor attention remains high. Caterpillar is a heavily watched industrial stock, and analysts and investors are debating whether its powerful multiyear rally can continue. The company’s shares have gained substantially over five years, raising the importance of future earnings and cash-flow growth.
• Negative Sentiment: Valuation may be limiting further upside. Fair-value analysis is mixed: earnings multiples appear relatively reasonable, while a discounted-cash-flow estimate suggests the stock is approximately fairly valued. After its extended rally, the shares face a higher hurdle to justify additional gains. Caterpillar Stock Looks Slightly Above Fair Value
• Negative Sentiment: Analyst sentiment has softened. Erste Group Bank AG downgraded Caterpillar from “buy” to “hold,” adding pressure to the stock’s near-term outlook.
• Negative Sentiment: Rare-earth supply risks could increase costs or disrupt production. China’s tighter export controls on rare-earth materials used in motors, sensors and control systems may affect Caterpillar’s advanced equipment and force manufacturers to secure more expensive alternative supplies. Caterpillar Faces Rare Earth Squeeze

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. Truist Financial upped their price objective on shares of Caterpillar from $1,043.00 to $1,218.00 and gave the stock a “buy” rating in a research note on Thursday, July 2nd. UBS Group reiterated a “neutral” rating and issued a $900.00 target price on shares of Caterpillar in a research note on Tuesday, June 2nd. DA Davidson increased their price target on Caterpillar from $650.00 to $845.00 and gave the stock a “neutral” rating in a research report on Monday, May 4th. Robert W. Baird raised their price target on Caterpillar from $1,165.00 to $1,200.00 and gave the company an “outperform” rating in a report on Friday, June 26th. Finally, Morgan Stanley set a $915.00 price objective on Caterpillar and gave the company an “equal weight” rating in a research report on Friday, May 1st. Fourteen equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $980.57.

Caterpillar Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off?highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.